Profile shows schools' finances slipping; things only to get worse
An annual financial profile of the state's public schools finds the number of districts cited for doing a good job in managing their finances slipping, from 72 percent in 2009 to 66.5 percent in 2010.
The real picture may be even worse, as the report released Wednesday was based on last summer's data.
"The Financial Profile is a 'point in time' picture and it is likely that the financial condition of many districts has changed in the last nine months since the end of the prior school year," a state board of education news release noted.
The state is more than $4 billion behind in payments to government agencies, with nearly $895 million in late payments to schools.
The profile, published each spring since 2003, is based on data from the previous fiscal year. It grades districts in five areas - their fund balance to revenue ratio; expenditures to revenue ratio; days cash on hand; percent of short-term borrowing available; and percent of long-term debt remaining. Each grade is included on districts' yearly state report cards.
According to the state board, the data has been revised so that districts were not penalized for the impact of last year's payment delays.
Like their pupils' grade point averages, districts can score a maximum of 4 points on a financial scale, earning one of four designations - financial recognition, financial review, financial early warning, and financial watch.
A majority of the 92 districts in the Daily Herald's coverage area earned "financial recognition" distinctions this year - Arlington Heights School District 25, East Maine School District 63, Schaumburg School District 54 among them.
Addison District 4, Indian Prairie District 204 and West Aurora District 129 all earned a designation in the next highest category, "financial review."
Of the 66 "financial early warning" districts are Elgin Area School District U-46 and Lake Park High School District 108 in Roselle.
Cary Elementary District 26, Wauconda District 118 and Waukegan District 60 earned the lowest distinction, "financial watch."
Across the suburbs, districts have spent recent weeks laying off staff, slashing their budgets, and cutting arts programs, extracurricular and sports programs.
While the state was behind in payments to districts last year, school districts largely got the funds they were promised because the state was able to plug funding holes with federal stimulus funds.
That money is now used up. Unless legislators find a way to restore funding, State Superintendent Christopher Koch warned, "we will likely see this trend of increased financial stress continue for districts across the state."